oblem 3: a. ABC Bank's deposits are $60 million b. Capital is $10 million c. Reserves are 10% of the deposits d. $10 million is invested in marketable securities e. The balance funds have been given out as loans f. Average return on marketable securities: 11% g. Average return on loans: 14% h. Average cost of deposits: 10% i. Income from services: $500,000 j. Operating expenses: $1,300,000 k. Tax rate: 40% 1. There are 330,000 common shares outstanding m. Common dividends this year: $400,000 n. Annual preferred dividends: $500,000 0. Retained earnings opening balance: $2,000,000 Equirements: i) ii) iii) Prepare the initial balance sheet from the above data Prepare the income statement for the year just ended Calculate the bank's spread in dollars, percentages and basis points Calculate the EPS Prepare the Retained Earnings Statement for the year just ended. iv) v)